Thursday, June 6, 2013

Swamy writes to PM: Demands comprehensive review of Jet-Etihad deal

Janata Party President Dr Subramanian Swamy has demanded that the agreement between Jet Airways and Etihad Airlines be reviewed as it is not in national interest. He has written a letter to Prime Minister Man Mohan Singh has asked for a comprehensive review of the deal. He has announced that if PM does not stop this , then he will approach court with a public interest litigation (PIL) .

The text of the letter is reproduced here along with two news paper reports-one in Hindi (Amar Ujala Dainik by Ajeet Singh) and next by Palak Shah in ET ,Mumbai.

Letter to Prime Minister

Dear Prime Minister: May 29, 2013

I write this letter on the subject of another developing mega fraud that also
impinges on India’s national security. This fraud is the so-called Jet
Airways-Etihad deal, that has two components—one of enabling Etihad to become
entitled by a MoU executed on 24.04.2013 by the Governments of India and UAE
[Abu Dhabi] on Bilateral Air Services vastly enhance Etihad’s air traffic,
measured by seat capacity, between the two countries. This arbitrarily
determined entitlement, tantamount to free provision of India’s sovereign
airspace to a foreign airline, hence fraught with serious national security
issues, is patently for sweetening the private purchase of Jet Airway’s
substantial equity by Etihad.

What is distressing is that the minuted Note signed by Finance Minister Mr. P.
Chidambaram dated 22.04.2013 [Annexure 1] reveals that this rocket speed
clearance of the deal is on your “direction”. The enclosed Note in Annexure 1,
sanitized to delete file notings of officials and signatures [including of FM],
is self explanatory.

News media reveal that the inked deal on bilateral air space use is to be
cleared by the Cabinet soon upon your return from Japan, and the Etihad equity
purchase is to be put up and cleared by the FIPB and signed by the FM around7.6.2013.

My usually reliable sources abroad tell me that this deal if finally cleared
and implemented would destroy Indian airline industry, particularly Air India,
and empower a foreign airline and a nation known for money-laundering become a
hub of India’s passenger traffic.

That is why the Parliament’s Standing Committee on Transport, Tourism and
Culture in its Report submitted early this month on the Ministry of Civil
Aviation’s Demand for Grants (2013-14) stated [paras 77-94] that this Bilateral
Agreement [now being processed for execution at an uncharacteristic and
unprecedented pace], is reconsidered since in it is not in the national
interest. The Committee has also recommended [para 94] penalization of Jet
Airways for clandestinely selling its London route entitlement to Etihad even
before the deal is sealed, and without informing the Government of India.

Therefore if you do not order a comprehensive review of these two interlocking
agreements i.e., [1] between GOI and UAE of use of air space for flights and
seats offered and [2] purchase of Jet Airways equity, you will be directly
responsible for an arbitrary and unreasonable deal in which windfall gains will
be made by private and foreign parties at the cost of the nation and hence
without any public interest.

Prima facie, this would attract Section 13(1)(d) (iii) of the Prevention of
Corruption Act (1988) and make you and some others culpable under the said
Section.
The common talk in UAE is that following the Supreme Court’s cancellation of
the 2G Spectrum licence of the Etisalat Telecom, which licence was illegally
bought by them from Swan Telecom, the illegal beneficiaries from that deal who
are highly placed in your government, have sought by this airlines’ deal to mitigate
formal and informal losses suffered by Etisalat and hence UAE. In this
connection, the undue interest shown by the Chairperson of the National
Advisory Council, Ms. Sonia alias Antonia Gandhi, in processing of these two
agreements at rocket speed is worthy of notice in the national interest.

If you decide to direct a review of these two aforesaid agreements, I shall
happy to assist your government in the entire matter. Otherwise, aggrieved by
your disregard of public interest I shall approach the Supreme Court by way of
a Public Interest Litigation.

MUMBAI:
After the Parliament standing committee on Transport Tourism & Culture
raised concerns on the Jet-Etihad deal, Janta Party chief Subramanian
Swamy has written to Prime Minister Manmohan
Singh seeking a probe into the issue.

Swamy has
said that he may move the Supreme Court against the deal if no probe was ordered
by the PM. The Abu Dhabi-based Etihad
Airways recently agreed to infuse Rs 2,054 crore into Jet Airways which would
help the foreign carrier expand its limited footprint in India. The letter,
dated May 29, states that the deal has two components, which enables Etihad to
become entitled to Bilateral Air Services that vastly enhances its air traffic,
measured by seat capacity, between the UAE and India.

And, second
of arbitrarily determined entitlement, that tantamounts to free provision of
India's sovereign airspace to a foreign airline which has serious security
implications. A memorandum of understanding between the Government of India and
the UAE have facilitated these provisions, says the letter.

Last month,
the Parliament Standing Committee led by CPM Leader Sitaram
Yechuri in its report had said that the bilateral agreement
(between India and the UAE) are not in the national interest. The committee had
also recommended penalising Jet Airways for clandestine sale of its London
route entitlement to Etihad even before the deal was sealed, which the report
said was done without informing the government.

"If you
(Prime Minister) do not order a comprehensive review of these two interlocking
agreements i.e., [1] between GoI and UAE of use of air space for flights and seats
offered and [2] purchase of Jet Airways' equity, you will be directly
responsible for an arbitrary and unreasonable deal in which windfall gains will
be made by private and foreign parties at the cost of the nation without any
public interest," Swamy said in his letter.

"If you
decide to direct a review of these two aforesaid agreements, I shall be happy
to assist your government in the entire matter. Otherwise, aggrieved by your
disregard of public interest, I shall approach the Supreme Court by way of a
Public Interest Litigation," the letter added.